Background
With-profits endowment policies were aggressively sold for many years, including during the 1980s, by insurance companies. The policies were marketed as an almost guaranteed way to pay off a mortgage and leave the policy holder with a lump sum once it had matured.
The with profits endowment policy was sold alongside an interest only mortgage. By only paying interest, mortgage repayments were kept low. The endowment policy also had monthly premiums to pay which ran for the term of the mortgage. The policy would rise in value as premiums were paid and through profits from investments, paying off the mortgage when the policy matured.
However, many policies did not increase to the level that was required.
Read more about this topic: Endowment Selling
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